Contribution Rates

ASRS Defined Benefit Plan

The Arizona State Retirement System Defined Benefit Plan is the primary retirement plan for ASRS members and will provide lifelong monthly retirement income.

The plan is tax qualified under section 401(a) of the Internal Revenue Code. It is a “cost sharing” model, meaning both the member and the employer contribute equally. Members are also mandated to participate and contribute to the ASRS Long Term Disability Income Plan.

Contribution rates are actuarially determined and are adjusted annually to ensure the plan remains fiscally sound and able to meet current and future obligations.

There are two portions to the ASRS contribution rate - the Retirement Pension & Health Insurance Benefit, and the Long Term Disability Income Plan. The Pension Plan contribution is a pre-tax deduction, and the Long-Term Disability deduction is post-tax. Tax on pension benefits is deferred until payment is made to the member as a benefit or refund.

For additional rate details, please see the Employer Contribution Reporting page.

Alternate Contribution Rate - for Retired, Returned to Work Members

For members who retire, then returned to work for an ASRS employer while keeping their monthly pension, an Alternate Contribution Rate (ACR) is required. Read more on the ACR page.